HomeMy WebLinkAbout(0009) M&C 20-0278City of Fort Worth,
Mayor and
DATE: 05/05/20
Texas
Council Communication
LOG NAME: 13PID7 MIDYEARFY20
SUBJECT
M&C FILE NUMBER: M&C 20-0278
Adopt Resolution Amending the Fiscal Year 2019-2020 Budget and Five -Year Service Plan for Public Improvement District 7 - Heritage and
Adopt Appropriation Ordinance (COUNCIL DISTRICTS 4 & 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution approving the revised Fiscal Year 2019-2020 Budget and Five -Year Service Plan for Public Improvement District
7 — Heritage to reflect amendments associated with a mid -year review; and
2. Adopt the attached appropriation ordinance adjusting receipts and appropriations in the Fort Worth Public Improvement District 7 - Heritage
Fund by decreasing receipts and appropriations in the amount of $204,304.00 in Fiscal Year 2019-2020, and increasing the available, unreserved
fund balance.
DISCUSSION:
The City of Fort Worth Department of Financial Management Services administers the City's Public Improvement Districts (PIDs), in accordance
with Chapter 372 of the Texas Local Government Code. The City's PID Policy outlines the need to proactively work with the PID managers to
oversee the services being provided by the PIDs and their associated financial positions. Staff, along with the contracted PID management
companies, have conducted mid -year reviews of the Public Improvement District 7 - Heritage (Heritage PID) Annual Budget (Budget) and
recommend the following adjustments.
The City contracts with FirstService Residential Texas PID, LLC (FirstService) to manage the Heritage PID. FirstService has identified the need to
decrease the Heritage PID Budget by the use of fund balance in the amount of $204,304.00, in order to align expenses with actual activities in the
Budget and Five -Year Service Plan. The expense decrease can be attributed primarily to planned activities being postponed, reduced, or
interrupted by COVID-19. The proposed decrease in use of fund balance for Heritage PID will increase reserves in the fund balance.
Revenue Adjustments:
Previously
Recommended
Amended
Line Items to
Approved FY20
Mid -Year
FY20 Budget
be Adjusted
Budget Item
Adjustment
Item
PID
Assessments
$1,790,204.00
-
$1,790,204.00
COFW
Payment in lieu
$191,096.00
-
$191,096.00
of Services
Use of Fund
$343,244.00
$(204,304.00)
$138,940.00
Balance
Total Budget
Revenue
$2,324,544.00
$(204,304.00)
$2,120,240.00
Expenditure Adjustments:
Previously
Recommended
Amended
Line Items to be
Approved FY20
Mid -Year
[FY20 Budget
Adjusted
Budget Item
Adjustment
Item
Landscaping/Tree
$1,166,551.00
$(38,657.00)
$1,127,894.00
Maintenance
Common Area
Maintenance
$316,323.00
$(94,789.00)
$221,534.00
day Lighting
F
$28,500.00
$3,000.00
$31,500.00
Line Items to be
Previously
Recommended
Amended
Adjusted
Approved FY20
Mid -Year
FY20 Budget
Budget Item
Adjustment
Item
Security
$85,000.00
$(6,250.00)
$78,750.00
Enhancements
Advertising
1 $35,000.00
$(34,000.00)1
$1,000.00
Public Events
11 $85,000.00
$(50,000.00)
$35,000.00
Capital
$200,000.00
$6,392.00
$206,392.00
Improvements
Annual Review
-
$10,000.00
$10,000.00
Totals
$1,916,374.00
$(204,304.00)
$1,712,070.00
Staff supports FirstService's recommended mid -year budget adjustments. All other previously approved line items not mentioned above remain
the same. Upon approval of the above recommendations, the total budgeted expenses for Fiscal Year 2019-2020 will be $2,120,240.00. This mid-
year budget adjustment will increase the unaudited, unassigned fund balance by a total of $204,304.00. The revised Budget and Five -Year Service
Plan will take effect upon approval by City Council. The City and FirstService will amend the existing management contract to reflect the mid -year
adjustment (City Secretary Contract No. 52905). The proposed changes to the Heritage PID Budget maintains compliance with reserve
requirements
The Heritage PID is located in COUNCIL DISTRICTS 4 & 7.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds
will be available in the current operating budget, as appropriated of the FWPID #7-Heritage Fund. Prior to any expenditure being incurred,
the Financial Management Services Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by. Kevin Gunn 2015
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338